Tela Bio, Inc. · NASDAQ:TELA
Tela Bio — Investor Presentation (April 2020)
25 slides from Tela Bio's investor presentation, Apr 1, 2020
Slide 1: TELA Bio: Advancing Soft Tissue Reconstruction
1 TELA Bio: Advancing Soft Tissue Reconstruction April 2020
Slide 2: Forward Looking Statements
2 Forward Looking Statements This presentation contains forward - looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 . All statements other than statements of historical facts contained in this document, including but not limited to statements regarding pos
Slide 3: TELA Bio Snapshot
3 A commercial stage medical technology company marketing a new category of tissue reinforcement materials to address unmet needs in soft tissue reconstruction ▫ Differentiated portfolio of advanced reinforced tissue matrices addressing hernia repair, abdominal wall reconstruction and plastic and re
Slide 4: OviTex: ~$1.5 Billion Annual U.S. Total Addressable Hernia Market Opportunity
4 OviTex: ~$1.5 Billion Annual U.S. Total Addressable Hernia Market Opportunity Source: Millennium Research Group Reports, IMS Health Data 1) Management estimate. Market size based volume weighted average selling price for OviTex ~$650 million US market (1) ~711,000 total procedures per year ~$500 m
Slide 5: What is a hernia?
5 What is a hernia? ▫ Occurs when an internal part of the body pushes through a weakness or hole in the muscle or surrounding tissue ▫ Natural occurring weakness ▫ Weakness from previous surgical incision ▫ Likelihood of developing a hernia increases with age & obesity Treating a hernia ▫ Surgical r
Slide 6: Ventral Hernia: Complex Patient Population
6 Ventral Hernia: Complex Patient Population • CDC Wound Class I (clean) • Healthier patients - no co - morbidities • Primary hernia repair • CDC Wound Class II (clean - contaminated) • Patient co - morbidities (i.e. obesity, diabetes, COPD) • May have prior hernia repair failure • CDC Wound Class I
Slide 7: Current Ventral Hernia Treatment Options: No Perfect Product
7 Current Ventral Hernia Treatment Options: No Perfect Product PERMANENT SYNTHETIC MESH RESORBABLE SYNTHETIC MESH BIOLOGIC MESH Ventralight ™ Parietex ™ ProGrip ™ PROCEED ® P HASIX ™ Mesh GORE ® BIO - A ® Strattice™ SurgiMend ® Gentrix ® XenMatrix ™ Natural Repair Products Simple Ventral Hernia Ingu
Slide 8: Limitations of Reconstruction Materials Used in Hernia Repair
8 ▫ Persistent inflammatory response ▫ Encapsulation of implant ▫ Chronic post operative pain ▫ Scar tissue / lack of remodeling ▫ Mesh infections ▫ Significant costs of re - operation ▫ Organ erosion or perforation ▫ 6,000 related U.S. lawsuits ▫ Danish Hernia Database: ~17% reintervention at five
Slide 9: Our Solution: New Category of Tissue Reinforcement Materials
9 Purposefully Designed Biologic & Polymer Solutions for Specific Clinical Needs Our Solution: New Category of Tissue Reinforcement Materials Biologic Tissue derived from sheep Polymer Fibers Innovative Textile Engineering Hernia & Ab Wall Reconstruction Plastic Reconstruction Surgeon Collaboration
Slide 10: High Quality Biologic Material Drives Technology Platform
10 High Quality Biologic Material Drives Technology Platform TELA maintains a definitive license agreement with Aroa BioSurgery for the use of ovine rumen ▫ Product development, commercial strategy & execution and clinical data generation ▫ Revenue sharing agreement based on net sales; TELA retains
Slide 11: Our Solution: A New Category of Soft Tissue Reinforcement Materials
11 Our Solution: A New Category of Soft Tissue Reinforcement Materials ▫ Designed in close collaboration with more than 100 surgeons ▫ Products designed with over 95% biologic material (<5% polymer/synthetic content) ▫ Benefits of both biologic materials and polymer materials ▫ Supports range of sur
Slide 12: OviTex: a New Approach to Soft Tissue Reconstruction for Hernia Repair
12 OviTex: a New Approach to Soft Tissue Reconstruction for Hernia Repair and Abdominal Wall Reconstruction An innovative reinforced tissue matrix designed to reduce stretch compared to biologic matrices and long - term complications experienced with resorbable and permanent synthetic meshes Unique
Slide 13: Comprehensive Portfolio for a Range of Hernia Types & Surgical Techniques
13 Comprehensive Portfolio for a Range of Hernia Types & Surgical Techniques Images represent permanent polymer OviTex products. Resorbable polymer products have clear polymer. * Biomechanical data on file. CONFIGURATION OviTex 4 - layer device, not intended for intraperitoneal placement Strength*:
Slide 14: OviTex LPR for Laparoscopic & Robotic-Assisted Repair
14 ▫ OviTex LPR is specifically tailored for robotic - assisted hernia surgical repairs ▫ Significant increase in robotic hernia repairs in last few years ▫ Robotic - assisted hernia repair provides the benefits of laparoscopic repair ▫ Designed for improved surgical handling, access, and primary cl
Slide 15: Disruptive Technology Supported by a Compelling Body of Clinical Evidence
15 91 Adult Patient, Prospective, Single Arm, Multicenter BRAVO Study ▫ 0 (0%) hernia recurrence in first 20 patients at 24 - months ▫ 1 (2%) hernia recurrence in first 57 patients at 12 - months More than 200 Non - Human Primates ▫ OviTex demonstrates more rapid tissue integration and revasculariza
Slide 16: Multiple Future Analyses of BRAVO Data Planned for 2020
16 Multiple Future Analyses of BRAVO Data Planned for 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2020 • 20 - patients at 24 - months • 57 - patients at 12 - months • 84 - patients at 3 - months • ~75 patients at 12 - months • ~50 - patients at 24 - months ▫ Primary focus is hernia recurrence rate at each time
Slide 17: OviTex BRAVO Study Shows Low Recurrence Rate
17 OviTex BRAVO Study Shows Low Recurrence Rate at 12 and 24 - months Product Name Tissue Reinforcement Material Hernia Recurrence Rate Number of Hernia Recurrence Number of Patients who Completed Follow - up Follow - up Period in Months OviTex Reinforced Tissue Matrix 1 57 12 OviTex Reinforced Tiss
Slide 18: Plastic and Reconstructive Surgery Represents a Significant Market Opportunity
18 ▫ Use of biologic matrices validated by growing clinical literature ▫ Biologics provide the following clinical benefits: ▫ Ability to define shape and position ▫ Soft tissue reinforcement ▫ Improvement of tissue quality ▫ Aids in defining the pocket and allows for more immediate tissue expansion
Slide 19: OviTex PRS: Purposely Designed for Plastic and Reconstructive Surgery
19 OviTex PRS: Purposely Designed for Plastic and Reconstructive Surgery Layers of biologic material enable functional tissue remodeling Corner - lock diamond embroidery pattern allows the product to stretch while maintaining its shape Fenestrations and slits facilitate fluid management, allow for r
Slide 20: Commercial Organization
20 Commercial Organization Recognize need for integrated approach to account management to meet the needs of all stakeholders (surgeons, supply chain & OR / materials management) ▫ Single direct sales effort calling on General, Plastic Recon, Colorectal & Trauma surgeons ▫ Supplement high volume ter
Slide 21: Focused on Driving Utilization within Accessed Accounts
21 1. Data based on estimates from Definitive Healthcare and IQVIA Hospital Procedure and Diagnosis data. Focused on Driving Utilization within Accessed Accounts Contracts in place with multiple national and regional Group Purchasing Organizations (GPOs) Current GPO contracts provide access to ~1,90
Slide 22: Growth Strategy
22 Growth Strategy • U.S. sales force expansion • Surgeon education • Target high - decile hernia and plastic and recon. surgeons Current • Drive adoption within health systems under GPO contracts • Publish BRAVO clinical and health economics data • Pursue additional contracts with large GPOs and ID
Slide 23: Historical Financial Summary
23 Historical Financial Summary Q4 2018 Q4 2019 Quarterly Results ($ millions) ▫ Revenue growth 87% YOY ▫ Gross Margin 60% vs. 36% for full year 2018 ▫ Cash, cash equivalents & short - term investments: $54.6 million 2019 Performance 2018 2019 Annual Results ($ millions) 87% growth 100% growth
Slide 24: Statement of Operations
24 Statement of Operations Three months Ended December 31 Twelve months Ended December 31 2019 2018 2019 2018 Revenue $4.9 $2.4 $15.4 $8.3 Cost of revenue 1.8 1.3 5.9 4.5 Amortization of Intangible Assets 0.1 0.1 0.3 0.8 Gross profit $3.0 $1.0 $9.3 $2.9 Gross margin 61% 42% 60% 36% Operating expense
Slide 25: Investment Highlights
25 Investment Highlights Advanced reinforced tissue matrix portfolio supported by compelling clinical evidence Focused on ~$2.0 billion annual U.S. total addressable markets Well - defined high - decile surgeon customers targeted by growing direct sales force Long - term supply agreement that provid